Question 1 Consider the following facts for Company A: –


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Question 1 Consider the following facts for Company A: – Beginning inventory = $71,000 – Cost of goods purchased = $292,000 – Ending inventory = $69,000 Based on these facts, Company A’s Days in Inventory ratio is ______ days. Question 2 Consider the following facts: – Company A had inventory of $300,000 at the beginning of the period. – It wants inventory on hand to be $350,000 at the end of the period. – Net sales for the period are expected to be $1,500,000. – The gross profit rate is expected to be 30%. How much merchandise should Company A expect to purchase during the year? Question 3 Consider the following facts: – Company A begin business operations in the month of April. – On April 1, it purchased 150 units of goods for $390. – On April 10, it purchased 200 units of goods for $585. – On April 15, it purchased 200 units of goods for $630. – On April 28, it purchased 150 units of goods for $510. – At the end of the month, it discovered that it had 200 units on hand after completing its physical inventory count. – Company A uses the FIFO inventory accounting method. Company A’s cost of goods sold for April is: Question 4 Consider the following facts: – Company A has the following inventory information: – Inventory at the beginning of January was 15 units purchased at $8.00 each. – On January 8, purchased 60 units @ $8.30 each – On January 17, purchased 30 units @ $8.40 each – On January 25, purchased 45 units @ $8.80 each – On January 31, a physical count showed 45 units on hand – Company A uses the periodic inventory system Company A’s cost of goods sold under the average-cost method is: Question 5 Consider the following facts: – Company A had product sales revenues of $30,000 for the month. – Its cost of goods sold was $18,000 for the month. – Its other operating expenses were $2,000 for the month. – Company A also had rent revenue of $500 for the month. – Also during the month, it sold a delivery truck for a gain of $1,000 during the month. For the month, Company A’s gross profit was: Question 6 Consider the following facts: – Company A begin business operations in the month of April. – On April 1, it purchased 150 units of goods for $390. – On April 10, it purchased 200 units of goods for $585. – On April 15, it purchased 200 units of goods for $630. – On April 28, it purchased 150 units of goods for $510. – At the end of the month, it discovered that it had 200 units on hand after completing its physical inventory count. – Company A uses the average-cost inventory accounting method. Company A’s cost of goods sold for April is: Question 7 Consider the following facts: – Company A has the following inventory information: – Inventory at the beginning of January was 15 units purchased at $8.00 each. – On January 8, purchased 60 units @ $8.30 each – On January 17, purchased 30 units @ $8.40 each – On January 25, purchased 45 units @ $8.80 each – On January 31, a physical count showed 45 units on hand – Company A uses the periodic inventory system – Company A uses the specific identification method. – The ending inventory includes 10 units from each of the purchases and 15 units from the beginning balance. Company A’s cost of goods sold is: 1Question 8 Consider the following facts for Company A: – Beginning inventory = $45,000 – Cost of goods purchased = $190,000 – Ending inventory = $55,000 Based on these facts, Company A’s Days in Inventory ratio is ______ days. 1Question 9 Consider the following facts: – Company A had product sales revenues of $30,000 for the month. – Its cost of goods sold was $18,000 for the month. – Its other operating expenses were $2,000 for the month. – Company A also had rent revenue of $500 for the month. – Also during the month, it sold a delivery truck for a gain of $1,000 during the month. For the month, Company A’s operating income (loss) was 1Question 10 Consider the following facts: – Company A purchased goods for $50,000 – The purchase terms were 2/10,n/30 – Company A returned $1,000 of

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